Question: Emily's Furniture Store buys a desk at a wholesale price of $145.00. If the markup rate at Emily's Furniture Store is 60%, what is the total markup for the desk in dollars?
Answer: Remember that a markup rate is a percentage of the wholesale price that a store adds to get a selling or retail price. The amount of markup can be found with the following equation: markup rate $\times$ wholesale price $=$ amount of markup Since the markup rate is a percentage, we have to convert it into a decimal first. Percent means "out of one hundred," so $60\%$ is equivalent to $\frac{60}{100}$ which is also equal to $60 \div 100$ $60 \div 100 = 0.60$ Now you have all the information you need to use the formula above! $0.60$ $\times$ $$145.00$ $=$ $$87.00$ The amount of markup on the desk is $$87.00$.